Manhattan Investment Fund Manager Convicted Of Securities Fraud, Wire Fraud, And Investment Adviser Fraud Charges

 

 Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced that DONALD LAGUARDIA was convicted yesterday following a five-day jury trial before the Honorable Lewis A. Kaplan.  As the jury found, between 2013 and 2016, LAGUARDIA, the chief executive officer and co-founder of a New York-based investment firm, L-R Managers, LLC, lied to investors and misappropriated money from investment funds managed by LAGUARDIA through L-R Managers.  The jury convicted LAGUARDIA of three counts: securities fraud, investment adviser fraud, and wire fraud.

Acting U.S. Attorney Audrey Strauss said:  “As a jury unanimously determined, Donald LaGuardia lied to investors about how their invested money would be utilized, failing to disclose that much of it would be spent on business and personal expenses.  Further, LaGuardia continued to lie in soliciting additional investors even after he was well aware his company was in financial distress.  Now he awaits sentencing for his crimes.”

According to the Indictment, evidence presented during the trial, court documents, and statements in open court:

From in or about 2013 through in or about 2017, LAGUARDIA solicited millions of dollars from investors for the LR Global Frontier Master Fund and two related feeder funds (collectively, the “Frontier Funds”), which had a stated focus on investments in “frontier” markets in Latin America, Central and Eastern Europe, the Middle East, Africa, and Asia.  Contrary to LAGUARDIA’s representations, and in breach of his duties to investors in the Frontier Funds, LAGUARDIA misappropriated more than $1.2 million in investors’ money to finance L-R Managers’ payroll, rent for its office space on Park Avenue in Manhattan, and hundreds of thousands of dollars in charges on the firm’s credit card, among other unauthorized expenses.  At least $191,000 of the misappropriated money went directly to, or for the benefit of, LAGUARDIA personally.

In one example, in 2013, LAGUARDIA solicited an $800,000 investment in the Frontier Funds from an investor (“Investor-1”).  Upon receipt of Investor-1’s money, an L-R Managers employee sent an email to LAGUARDIA and another person asking for approval to forward the $800,000 to the Frontier Funds.  LAGUARDIA responded, “Dont [sic] wire anything yet!”  LAGUARDIA then caused approximately $390,000 of Investor-1’s investment never to be transmitted to the Frontier Funds, but instead to be used to pay himself approximately $52,000 and for various other personal and business expenses.

By September 2015, L-R Managers faced substantial financial difficulties.  On September 1, 2015, an L-R Managers principal sent an email to LAGUARDIA and others at the firm stating that it would be “ethically troubling to accept money into the [Frontier Funds] when [L-R Managers] can no longer support . . . payroll and mission critical services.”  Nevertheless, just a few days later, a new investor solicited by LAGUARDIA (“Investor-2”) made a $2 million investment into the Frontier Funds.  Prior to this investment, LAGUARDIA concealed his firm’s near insolvency from Investor-2 and did not disclose that the Frontier Funds had been paying substantial expenses for L-R Managers, contrary to the representations in the funds’ offering documents.  LAGUARDIA then proceeded, over the course of several months, to use a substantial portion of Investor-2’s investment in the Frontier Funds to continue paying himself and subsidizing his firm’s business expenses.

LAGUARDIA, 53, of Lavallette, New Jersey, was convicted at trial of one count of securities fraud, one count of wire fraud, and one count of investment adviser fraud.  LAGUARDIA faces a maximum sentence of 20 years in prison on each of the securities and wire fraud counts and a maximum sentence of five years in prison on the investment adviser fraud count.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentence imposed upon LAGUARDIA will be determined by the judge.

Ms. Strauss praised the investigative work of the U.S. Postal Inspection Service.  Ms. Strauss also thanked the Securities and Exchange Commission, which previously brought a related civil action against LAGUARDIA.

Attorney General James Calls on Attorney General Barr to Reverse New Policy Eroding Public Confidence in Election

 

AG James and Coalition Oppose Policy Change That Allows U.S. Attorneys to Pursue

Wild Allegations of Voter Fraud Without Adhering to Long-Established Guiderails

 New York Attorney General Letitia James today called on U.S. Attorney General William Barr to reverse an abrupt change he recently made to a 40-year-old U.S. Department of Justice (DOJ) policy that, until this week, had kept the DOJ from interfering with presidential election results. In a letter to Attorney General Barr, Attorney General James and 22 additional attorneys general from around the nation voiced their “strong objection” to this policy reversal, which they said “will erode the public’s confidence in the election.” The coalition calls on Attorney General Barr to reverse his decision promptly.

“This policy reversal is nothing more than a last-ditch effort by a lame-duck administration to desperately latch on to power and sow chaos in our electoral process,” said Attorney General James. “The people have spoken, and Joe Biden and Kamala Harris have been elected president-elect and vice president-elect of the United States. This election was fair and safe, and even another branch of the Trump Administration has now publicly stated that this election was ‘the most secure in American history.’ The president and Attorney General Barr’s attempts to divide Americans and instill doubt in our elections is un-American and will not go unchallenged.”

The American people have voted in record numbers in a safe and secure election and have clearly chosen a new president. Despite this outcome, Attorney General Barr issued a new directive on November 9 — after results already showed that President Donald Trump had lost reelection — that stated that U.S. attorneys may now pursue allegations of voter fraud without adhering to long-established, important guardrails. Attorney General James and the coalition write in the letter today that until this directive was issued, the DOJ recognized that the principal responsibility for overseeing elections lied with states and had “taken care to avoid affecting the outcome of elections or even the perception of political intrusion in the electoral process.”

Additionally, last night, the Elections Infrastructure Government Coordinating Council and the Election Infrastructure Sector Coordinating Executive Committees — as part of the Trump Administration — issued a joint statement, in which they stated, “The November 3rd election was the most secure in American history…There is no evidence that any voting system deleted or lost votes, changed votes, or was in any way compromised.” The joint statement continues, “While we know there are many unfounded claims and opportunities for misinformation about the process of our elections, we can assure you we have the utmost confidence in the security and integrity of our elections, and you should too. When you have questions, turn to elections officials as trusted voices as they administer elections.”

Nowhere in the joint statement did the Elections Infrastructure Government Coordinating Council or the Election Infrastructure Sector Coordinating Executive Committees make mention for the need for the DOJ to insert itself in the election review process and investigate any false claims of voter fraud.

Joining Attorney General James in signing today’s letter are the attorneys general of California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Iowa, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, Oregon, Rhode Island, Vermont, Virginia, Washington, Wisconsin, and the District of Columbia.

Morris Park Veteran's Day Ceremony

 

The Peace Plaza triangle roadway had just been completed so there was plenty of parking for all who attended. While the crowd was a little smaller due to COBID-19 there were still over sixty people in attendance. Veteran and Officer of the Morris Park Community Organization Silvio Mazzalla emceed the shorter event this year. 

Councilman Mark Gjonaj and Assemblywoman Nathalia Fernandez spoke as did Veterans Gene De Francis and Joe Ronda. Each said how Veteran's Day affects or affected their lives. 

A wreath was laid as were flowers on the many symbolic headstones representing the many wars where soldiers from the Morris Park area or Borough of the Bronx have served with some never returning home.

Above - The crowd that was in attendance at Peace Plaza for the Veteran's day event.

Below - Councilman Mark Gjonaj is flanked by a few veterans as he speaks.

Above - Veteran Gene De Francis speaks about what Veteran Day means to him.

Below - Flowers are placed on one headstone by Veteran Joe Ronda.

Above - Sea of the Star Cadets hold and are ready to protect the American Flag.

Below - Councilman Mark Gjonaj stands with Police Officers from the 49th Precinct and other Veterans.

No. 202.74: Continuing Temporary Suspension and Modification of Laws Relating to the Disaster Emergency

 

No. 202.74

E X E C U T I V E  O R D E R

Continuing Temporary Suspension and Modification of Laws Relating to the Disaster Emergency

WHEREAS, on March 7, 2020, I issued Executive Order Number 202, declaring a State disaster emergency for the entire State of New York; and

WHEREAS, both travel-related cases and community contact transmission of COVID-19 have been documented in New York State and are expected to continue;

NOW, THEREFORE, I, ANDREW M. CUOMO, Governor of the State of New York, by virtue of the authority vested in me by Section 29-a of Article 2-B of the Executive Law to temporarily suspend or modify any statute, local law, ordinance, order, rule, or regulation, or parts thereof, of any agency during a State disaster emergency, if compliance with such statute, local law, ordinance, order, rule, or regulation would prevent, hinder, or delay action necessary to cope with the disaster emergency or if necessary to assist or aid in coping with such disaster, or to provide any directive necessary to respond to the disaster, do hereby suspend or modify, and direct, the following from the date of this Executive Order through December 12, 2020:

• Executive Order 202.3, as extended, and Sections 105 and 106 of the Alcoholic Beverage Control Law, to the extent necessary to require that:
  • All businesses that are licensed by the State Liquor Authority under sections 63 and 79 of the Alcoholic Beverage Control Law (“liquor stores” and “wine stores”) shall cease all off premises sales and close at or before 10:00PM, and shall not reopen before existing county opening hours permit.
  • All businesses that are licensed by the State Liquor Authority for on premises service of alcoholic beverages, shall cease all on premises service and consumption of food and beverages (including alcoholic beverages), inside or outside, at or before 10:00PM and shall not reopen before the later of any stipulated opening hours or existing county opening hours permit; further, to-go and delivery service of food, and non-alcoholic beverages only, may continue at such business licensed for on premises service until the earlier of any stipulated closing hours or existing county closing hours permit. 
  • This provision shall be subject to reasonable limitations and procedures set by the Chairman of the State Liquor Authority and/or any relevant Department of Health guidance.  

• All restaurants, irrespective of whether such restaurant is licensed by the State Liquor Authority, shall cease in-person dining at 10:00PM, but may continue curbside takeout and delivery service after 10:00PM so long as otherwise permitted, and may reopen no earlier than 5:00AM.

• Any gym or fitness center shall cease operation and close to the public at 10:00PM, and cannot reopen until 5:00AM.

• The directive contained in Executive Order 202.45, as extended, which amended the directives in Executive Order 202.42, 202.38, and 202.10, that limited all non-essential gatherings to allow gatherings of 50 of fewer individuals for any lawful purpose or reason, is hereby modified only insofar as to further limit non-essential private residential gatherings to 10 or fewer individuals for any lawful purpose or reason, provided that social distancing, face covering, and cleaning and disinfection protocols required by the Department of Health are adhered to.

• All suspensions, modifications, and directives issues pursuant to this Executive Order are effective at 10:00PM on Friday, November 13, 2020.

G I V E N   under my hand and the Privy Seal of the State in the City of Albany this twelfth day of November in the year two thousand twenty. 

BY THE GOVERNOR         

Secretary to the Governor

MAYOR BILL de BLASIO EMERGENCY EXECUTIVE ORDER # 161

EMERGENCY EXECUTIVE ORDER NO. 161 

November 13, 2020 

EMERGENCY EXECUTIVE ORDER

WHEREAS, on March 7, 2020, New York State Governor Andrew Cuomo declared a State disaster emergency for the entire State of New York to address the threat that COVID-19 poses to the health and welfare of New York residents and visitors; and 

WHEREAS, Emergency Executive Order No. 98, issued March 12, 2020 and extended most recently by Emergency Executive Order No. 159, issued November 3, 2020, contains a declaration of a state of emergency in the City of New York due to the threat posed by COVID-19 to the health and welfare of City residents, and such declaration remains in effect; and 

WHEREAS, this Order is given because of the propensity of the virus to spread person-toperson and also because the actions taken to prevent such spread have led to property loss and damage; and 

WHEREAS, measures taken to combat the spread of COVID-19 may prevent individuals, businesses and other entities from meeting legally imposed deadlines for the filing of certain documents or for the completion of other required actions; and 

WHEREAS, this Order is given in order to ensure that the Governor's orders are enforced; 

NOW, THEREFORE, pursuant to the powers vested in me by the laws of the State of New York and the City of New York, including but not limited to the New York Executive Law, the New York City Charter and the Administrative Code of the City of New York, and the common law authority to protect the public in the event of an emergency:

Section 1. I hereby direct that section 1 of Emergency Executive Order No. 160, dated November 8, 2020 is extended for five (5) days. 

§ 2. This Order incorporates any and all relevant provisions of Governor Executive Order No. 202 and subsequent orders issued by the Governor of New York State to address the State of Emergency declared in that Order pursuant to his powers under section 29-a of the Executive Law.

§ 3. I hereby direct the Fire Department of the City of New York, the New York City Police Department, the Department of Buildings, the Sheriff, and other agencies as needed to immediately enforce the directives set forth in this Order in accordance with their lawful enforcement authorities, including but not limited to Administrative Code sections 15-227(a), 28- 105.10.1, and 28-201.1, and section 107.6 of the New York City Fire Code. Violations of the directives set forth in this Order may be issued as if they were violations under the New York City Health Code, title 24 Rules of the City of New York sections 3.07 and 3.11, and may be enforced as such by the Department of Health and Mental Hygiene or any other agency named in this section. 

§ 4. This Emergency Executive Order shall take effect immediately, and shall remain in effect for five (5) days unless it is terminated or modified at an earlier date. 

Bill de Blasio, 

MAYOR 

Attorney General James Ready to Sue Trump Administration if New York Doesn’t Receive COVID-19 Vaccine with Rest of U.S.

 

New York Attorney General Letitia James today released the following statement after President Donald Trump announced that a coronavirus disease 2019 (COVID-19) vaccine in development will not be sent to New York once complete:

“This is nothing more than vindictive behavior by a lame-duck president trying to extract vengeance on those who oppose his politics. Once there is a fully-developed COVID-19 vaccine, we are confident that a Biden-Harris Administration will provide New York with the proper number of doses so that our state’s residents can achieve immunity. If dissemination of the vaccine takes place in the twilight of a Trump Administration and the president wants to play games with people’s lives, we will sue and we will win.”

Governor Cuomo Announces New Record Number of COVID-19 Tests Reported to New York State in Single Day - NOVEMBER 13, 2020

 

203,721 Test Results Reported to New York State Yesterday

Governors of Northeastern States to Hold Emergency Summit This Weekend

Based on Progress Controlling COVID Spread, Orange Zone in Rockland County Will Transition to Yellow Zone

Positive Testing Rate in All Focus Zone Areas is 4.58 Percent; New York State Positivity Outside All Focus Zone Areas is 2.29 Percent

Statewide Positivity Rate is 2.65 Percent

24 COVID-19 Deaths in New York State Yesterday

 

Governor Andrew M. Cuomo today announced that 203,721 COVID-19 test results were reported to New York State yesterday — a new record high for the State. The Governor also announced Rockland County's orange warning zone will transition to a yellow precautionary zone.

The Governor also announced that an emergency summit will be held this weekend with the governors of Northeastern states to discuss aligning policy in light of rising COVID-19 cases in the region and throughout the country.

"We are testing more than just about any other state in the nation, reaching new record highs in the number of tests we perform in a single day. Rockland County made good progress, so they're going to a yellow zone, and that is good news. The other good news is our infection rate is one of the lowest in the nation. The bad news is we are in the midst of a sea of COVID rising around us," Governor Cuomo said. "You look at the international numbers, and they are frightening - countries are locking down. You look at states around the country and the numbers are all going up quickly. The reality is the virus is mobile and we're in the holiday season and people will travel more. These are all elements that conspire to increase the spread. We believe we're going to have to be taking additional steps, and to the degree we can share information and align action with other regional states, we'll do that."

Modifications to Current Focus Zones

Rockland County - Orange Warning Zone Changes to Yellow Zone

Rockland County's Orange Warning focus zone has been under 3 percent positivity, and hospital admission rates have declined, meeting the metrics for transitioning to a Yellow Precautionary Zone. The buffer zone will be removed.

The Governor noted that the positive testing rate in all focus areas under the state's Micro-Cluster strategy is 4.58 percent, and outside the focus zone areas is 2.29 percent. Within the focus areas, 31,994 test results were reported yesterday, yielding 1,466 positives. In the remainder of the state, not counting these focus areas, 171,727 test results were reported, yielding 3,935 positives. 

Today's data is summarized briefly below:

• Patient Hospitalization - 1,737 (+60)
• Patients Newly Admitted - 290
• Hospital Counties - 51
• Number ICU - 331 (+23)
• Number ICU with Intubation - 137 (+1)
• Total Discharges - 81,390 (+192)
• Deaths - 24
• Total Deaths - 26,079

NYS Office of the Comptroller DiNapoli: Statewide Local Sales Tax Collections Decline 5.2 Percent in October

 

Local government sales tax revenue declined by 5.2 percent in October compared to the same month last year, according to State Comptroller Thomas P. DiNapoli. October’s sales tax collections totaled $1.4 billion for counties and cities, or $74.4 million less than in October 2019.

This drop was less severe than previous declines since the start of the COVID-19 pandemic, particularly in the spring when collections fell by double-digits. Still, declines in local sales tax collections continue to mount, and overall local government collections in 2020 (January-October) are down nearly $1.6 billion (10.4 percent) compared to the same period in 2019.

“Statewide local sales tax collections have declined year-over-year for eight straight months,” DiNapoli said. “Our local governments are on the forefront of the pandemic response and they need financial aid from the federal government to help them get through this crisis.”

New York City had a 5.3 percent, or $34.5 million, decline in sales tax revenue in October, and all but eight counties in the state saw drops in collections as well, ranging from 0.8 percent in Jefferson and Rockland counties to nearly 19 percent in Oswego and Monroe counties. On a regional basis, sales tax collections were down across the board, ranging from a decline of 2 percent in the North Country to a drop of 13.5 percent in the Finger Lakes.

DiNapoli reported last month that local sales tax collections dropped 9.5 percent in the July-September quarter, down $452 million from collections in the same quarter of 2019.

Table

Monthly Local Sales Tax Collections by Region (for detailed monthly breakdown)